Hero Motors Limited, the vehicle spare parts manufacturing company of Hero Motors Company Group, has withdrawn its application for initial public offering (IPO) of Rs 900 crore. Regarding the company's IPO, investors were hoping that it could provide a bumper earning opportunity, because in recent times, IPOs of different companies had given good earnings to the investors.
According to the information available on the website of market regulator SEBI, Hero Motors Limited has withdrawn the draft of its documents filed for approval of the IPO. In its draft documents, the company had proposed to raise Rs 500 crore by issuing new equity shares and offer for sale (OFS) of shares worth Rs 400 crore by promoter firms.
Under the OFS, OP Munjal Holdings was selling shares worth Rs 250 crore, while Bhagyodaya Investments and Hero Cycles were selling shares worth Rs 75 crore each. It had filed documents with SEBI in August to seek regulatory approval to launch the IPO.
Without giving any reason for withdrawing its application, the company has said that it withdrew the draft documents on October 5, 2024. Hero Motors is India's leading vehicle technology company. Hero Motors operates in two segments: engine solutions and alloys and metals. It has six manufacturing units in India, Britain and Thailand.
Hero Motors is one of India's top automotive companies and provides powertrain solutions (both electric and non-electric powertrains) to automotive original equipment manufacturers (OEMs) in the United States, Europe, India and the Association of Southeast Asian Nations (ASEAN) region. Does. It provides powertrain solutions to global clients such as BMW AG, Ducati Motor Holding S.p.A., Enviolo International Inc., Formula Motorsport, Hummingbird Inc.), HWA AG and global electric bicycle (e-bike) manufacturers.
Hero Motors has reported a net profit of Rs 17 crore for the financial year ending March 2024, down 58 percent compared to the previous year's profit of Rs 40.5 crore. This year the company's revenue stood at Rs 1,064.4 crore from Rs 1,054.6 crore last year.
